Correlation Between AptarGroup and Cooper Companies,

Can any of the company-specific risk be diversified away by investing in both AptarGroup and Cooper Companies, at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AptarGroup and Cooper Companies, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AptarGroup and The Cooper Companies,, you can compare the effects of market volatilities on AptarGroup and Cooper Companies, and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AptarGroup with a short position of Cooper Companies,. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptarGroup and Cooper Companies,.

Diversification Opportunities for AptarGroup and Cooper Companies,

0.91

Correlation Coefficient

AptarGroup  Cooper Companies,

Almost no diversification

The 3 months correlation between AptarGroup and Cooper is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding AptarGroup and The Cooper Companies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cooper Companies, and AptarGroup is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AptarGroup are associated (or correlated) with Cooper Companies,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cooper Companies, has no effect on the direction of AptarGroup i.e., AptarGroup and Cooper Companies, go up and down completely randomly.

Pair Corralation between AptarGroup and Cooper Companies,

Considering the 90-day investment horizon AptarGroup is expected to generate 3.44 times less return on investment than Cooper Companies,. But when comparing it to its historical volatility, AptarGroup is 3.16 times less risky than Cooper Companies,. It trades about 0.26 of its potential returns per unit of risk. The Cooper Companies, is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  9,454  in The Cooper Companies, on June 29, 2024 and sell it today you would earn a total of  1,500  from holding The Cooper Companies, or generate 15.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

AptarGroup  vs.  The Cooper Companies,

AptarGroup

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AptarGroup are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, AptarGroup reported solid returns over the last few months and may actually be approaching a breakup point.

Cooper Companies,

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Cooper Companies, are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Cooper Companies, displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AptarGroup and Cooper Companies,

The main advantage of trading using opposite AptarGroup and Cooper Companies, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptarGroup position performs unexpectedly, Cooper Companies, can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cooper Companies, will offset losses from the drop in Cooper Companies,'s long position.

The idea behind AptarGroup and The Cooper Companies, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.